AMN Healthcare to acquire B.E. Smith

Upon closing, the acquisition is expected to be immediately accretive to AMN's GAAP and adjusted earnings per share.

Founded in 1978, B.E. Smith is a premier, full-service healthcare interim leadership placement and executive search firm. For nearly a decade, the firm has been recognized each year by Modern Healthcare as one of the "Top Executive Search Firms". The firm places interim leaders and executives across all healthcare settings, including acute care hospitals, academic medical and children's hospitals, physician practices, and post-acute care providers. The firm is currently generating annualized revenue of approximately $100 million with an adjusted EBITDA margin of 15%.

"With increased demand and the evolution of new care delivery models, healthcare clients are faced with the critical challenge of recruiting the key executives and talent needed to lead the dramatic transformation their organizations are experiencing. The added strength of B.E. Smith's recruitment expertise and nationwide talent pool of healthcare leaders and executives further increases the strategic value that AMN Healthcare delivers to clients through our breadth of innovative workforce solutions," said Susan Salka, President and Chief Executive Officer of AMN Healthcare.

Doug Smith, President and CEO of B.E. Smith, added, "We are pleased to carry forward the legacy and strength of B.E. Smith as part of AMN Healthcare's prestigious recruitment and workforce solutions brands. The combined services of AMN and B.E. Smith provide increased value for all clients through an expanded network of quality healthcare leaders and a suite of workforce solutions offerings that are differentiated in the healthcare industry."

The transaction is structured to allow AMN to realize tax benefits having an estimated net present value of approximately $25 million. The purchase price is expected to be funded through a combination of term loan borrowings and revolver draws under the Company's credit facility. The acquisition, subject to regulatory approvals and customary closing conditions, is expected to close in early January 2016.